What Is TrueUSD (TUSD) And How Does It Work?
We recently added TrueUSD (TUSD). Check out this full guide to learn everything that you should know about TUSD and make the best use of it today.
TrueUSD is a stablecoin of USD backed ERC20; it is legally protected, collateralized fully and verified transparently by the 3rd party attestations. It is the one that makes use of various escrow accounts for reducing its risk and for offering the token holders the complete protection against misappropriation.
It was one of the first asset tokens which were built on the platform of TrustToken. It is a platform for creating the asset-backed tokens which one can easily purchase and can sell it across the globe. For say, gold tokens to gold, dollar tokens to the dollar can be made through the platform of TrustToken. The TrueUSD is a part of TrustToken, it is much similar to the USDT.
How does it work?
Under the system of TrueUSD, the US dollars are kept in the banking accounts of various trust companies that have signed the escrow agreements, rather than in a bank account which is controlled by one company.
As per the TrueUSD, the contents of these bank accounts get published regularly and are also subjected to monthly audits. This is one method to store USD which also ensures that users can enjoy great trust in TrueUSD as these collateralized holdings are not centralized in one entity; instead they are distributed throughout various fiduciary partners.
In technological terms, the TrueUSD implements a framework for ensuring that they are not responsible while issuing tokens. On the other hand, the USDT tokens get issued on the blockchain of bitcoin through the Omni protocol.
The tokens of TrueUSD are also based on the blockchain of ethereum, which allows the advanced mechanism issuance. If someone is willing to obtain the TrueUSD through online mode, they are required to pass check the KYC or AML.
Once it is completed, they can send USD to their trusted company partners of TrueUSD. As soon as the funds are also verified by the trust company, their API also instructs the TrueUSD smart contract for issuing the tokens on a ratio of 1 to 1 and sends them to Ethereum addresses which are associated with the account that is at hand.
Once it comes in your wallet, these tokens can be transferred to any of your friends or can be used for payment purposes. You can also redeem real US dollars by sending these TUSD tokens to the smart contract address that notifies the trust company and signals a bank transfer to the user's accounts.
This whole system verifies that issuance takes place in the environment that is decentralized and makes use of various APIs, and which ensures that the handling of fiat currency is better in comparison with other alternatives.
For what purpose TrueUSD was made?
For traders & exchanges
It is a great tool for hedging against the market volatility and for entering the markets without purchasing ETH/BTC first.
For mainstream commerce
Daily businesses and people can take the ultimate benefits of it which are offered by the technologies of blockchain without any exposure to the fluctuations in massive price.
The developing markets can make use of stable currencies for trading, for long term financial contracts as prediction markets, loans, and salaries. The financial institution can make use of a trustworthy asset for trading in crypto markets.
The process involved in TrueUSD
Generally, two main processes are involved in making use of TrueUSD, one is the purchasing of TrueUSD and the other is TrueUSD redemption.
For TrueUSD purchase
For this, the TrustToken works well with various trust companies that are already managing billions of dollars. Here the user is asked to pass a KYC check, after which one can send the USD to trust company for entering the escrow agreement. Soon after the fund's verification, the API instructs the TrueUSD smart contract for issuing TrueUSD to the user ethereum public address.
For TrueUSD redemption
For its redemption, you need to pass a KYC check and send the TrueUSD tokens to a smart contract from your registered ethereum public address. After this, the escrow bank sends the fund in USD. In this way, the TrueUSD system doesn’t touch any funds and their trusted companies perform all the purchase and receiving of the user’s amount through escrow bank accounts.
Why you should use TrueUSD
It is the true crypto which is backed by the real fiat reserves of USD and is independently audited and daily. Due to such benefits, it is a premium choice.
- - It is also backed by the US dollar, which acts as a stable currency for digital exchange.
- - Anyone that passes the standard KYC check can redeem the TrueUSD for USD
- - The TrueUSD is collateralized 100% by USD, it is held in the professional and trusted firm’s banks only.
- - The account holdings of the bank are regularly published and subjected to monthly attestations.
- - Regularly the independent 3rd party evaluation takes place by the popular auditing firms for added security practices.
- - It directly transacts with the trusted firm’s bank.
Benefits of TrueUSD
Offers legal protection. This Company offers legal protection as all its regular attestations get published which acts as a security feature for all.
Allows USD redeemable. One can easily redeem TUSD for the USD.
Trusted management of funds. It allows exchanging USD directly with escrow accounts, which is done through a trusted chain for funds exchange.
Fully collateral. The new tokens get minted & burned by smart contracts which state that a single TUSD token is collateralized always.
How to buy TrueUSD (TUSD)?
If you want to buy, sell or exchange TrueUSD (TUSD) fast, secure and with low fee, then you can use XMLGold Online Currency Converter.
On XMLGold, you will be able to buy, sell or exchange TrueUSD to many other e-currencies or cryptocurrencies, like Perfect Money EUR/USD, Payeer EUR/USD, Advcash EUR/USD (Advanced Cash), SEPA Transfer EUR, SWIFT Transfer EUR, Tether ERC20, Tether Omni (USDT), Litecoin (LTC), Bitcoin (BTC), C-Cex Voucher, Perfect Money Voucher EUR/USD, Ecoin Code, USD Coin, XMLToken. XMLGold is a reliable e-currency exchange platform which has been working since 2006. XMLGold provides a fast and simple exchange process at the one of the lowest fees at e-curreny market. Besides low exchange rates XMLGold also offers profitable Referral program and progressive Discount system to its customers.
Presently TUSD token has held its operations on a high standard and acting as a good stablecoin with the growing world. It can also be stored in any of the wallets which support the standard of ERC-20.